US Lawmakers concerns about Facebook Libra Launch

Lawmakers raised questioning Mark Zuckerberg, CEO of Facebook, on his cryptocurrency plans. House members on both parties of the aisle expressed dissatisfaction with the lengthy testimony.

October 24, 2019, | AtoZ Markets Zuckerberg answered questions from the House Financial Services Committee three months after David Marcus, Facebook’s chief of cryptocurrency, failed in his testimony to give politicians confidence that the company would wait for a regulatory structure before launching its Libra project.

The head Republican on the House Financial Services Committee has not seen much advanced by Zuckerberg. Frankly, I’m not sure we’ve learned anything new here, said Patrick McHenry, R.N.C, a ranking member, as the Facebook CEO concluded his testimony.

Zuckerberg Struggled To Satisfy House Members

Several members of the committee shared this view who had asked Zuckerberg to testify about the company’s plans with Libra. In June, Facebook announced that Libra intended to transform the way money circulates around the world and would be managed by a non-profit association supported by a range of businesses and organizations. But Zuckerberg struggled to satisfy House members, who are concerned about the regulation and governance structure of Libra.

I’m not sure we learned a lot of newer things, except now that they call the association an independent association, D-Tex representative Sylvia Garcia said in an interview after the hearing.

Garcia had been one of the legislators asking for Zuckerberg’s testimony on Libra. Although she was disappointed by his answers, Garcia says she still believes that Zuckerberg was the right person to call because Facebook is Mark Zuckerberg, and Mark Zuckerberg is Libra.

Watch the full video:  How Mark Zuckerberg testifies before Lawmakers on Facebook Libra

Lawmakers Develop New Rules For Regulators

Garcia says she is skeptical about the idea that the entities are separate. I do not think it will be so independent if Facebook has such control, and it’s their platform, she said. Throughout the hearing, committee members urged Facebook to suspend its plans as lawmakers develop new rules for regulators, or to relocate the Swiss Libra Association to the United States.

Waters said she could not support the plan at all. Ms. Waters said after the hearing, adding that she was not so sure that it was the same.

She said that she does not understand what Libra is trying to accomplish and that she has not been sufficiently explained. Merely saying that you are organizing Libra because you are concerned about unbanked and that it will have payment systems does not answer the questions I have, Waters said.

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